IATA's Bisignani seeks reduction in user fees, help on security charges
Dateline: Tuesday June 03, 2003
IATA DG and CEO Giovanni Bisignani yesterday called on governments to
assume security costs currently being borne by airlines and for a reduction
in airport and airways user fees. In a wide-ranging address to open the
59th IATA AGM yesterday in Washington, Bisignani asked, "Why are people
paying for their own security in the air and not in train stations?" He
urged other nations to follow the US example and compensate airlines for
security costs. At the same time he pointed out that "as airlines struggle,
governments allow monopoly service providers to count their money...Airport
and ATC operating margins are spectacular." He also repeated his call for
changes to the "three pillars of stagnation," which he defined as the
bilateral system ("We should move to regional liberalization"), national
ownership rules that limit foreign investment and the attitude of
competition authorities toward consolidation among airlines ("our industry
is still too fragmented"). According to IATA, airlines have eliminated
400,000 jobs since 9/11 in the drive for more efficiency. Member losses in
2002 from international operations totaled $3.8 billion, bringing 2001-02
losses to more than $14 billion, or nearly $25 billion when domestic losses
are included.--Perry Flint
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